1845-New5 Two Scheduled Pell Grants in an Award Year
SUPPORTING STATEMENT FOR PAPERWORK REDUCTION ACT SUBMISSION
Information Collections under the Final Regulations Governing the Federal Pell Grant Program – Two Scheduled Pell Grants in an Award Year
A. Justification
1. Necessity of Information Collected
As provided by the Higher Education Opportunity Act, the final regulations would establish that a student would be eligible for a second Scheduled Award of a Pell Grant in a single award year if the student earned in the award year at least the credit hours or clock hours of the first academic year of the student’s eligible program, and the student is enrolled on at least a half-time basis (see section 401(b) (5) (A) of the HEA).
The final regulations are a result of regulatory review of the program regulations to provide benefits to students, and protect the taxpayer’s interest. This request is for approval of the recordkeeping requirements contained in the attached final regulations related to the administrative requirements of the two scheduled Pell Grants in a single award year program. The information collection requirements in the final regulations are necessary to determine eligibility to receive program benefits and to prevent fraud and abuse of the program funds.
Pell Grant Program: (OMB control number 1845-NEW5)
Sections 690.63, 690.64 and 690.67 contain information collections requirements. Under the Paperwork Reduction Act of 1995 (44 U.S.C. 3507 (d)), the Department of Education is submitting a copy of this section to the Office of Management (OMB) for its review. We are making the following changes to those sections:
Section 690.63 – Calculation of a Federal Pell Grant for a payment period
This section of the regulations identifies circumstances under which a student may qualify to be paid from two Scheduled Awards in a payment period and provide guidance for calculating the student’s payments for that period.
Section 690.64 – Calculation of a Federal Pell Grant for a payment period which occurs in two award years
This section of the regulations identifies the how an institution determines a student’s eligibility to receive payments in a payment period that crosses two award years.
Section 690.67 – Receiving up to two Scheduled Awards during a single award year
This section of the regulations identifies how eligibility is determined, how a transfer student is treated, allowances for special circumstances, and the treatment of non-applicable credit or clock hours.
2. Purpose and Use of Information Collected
Under the final regulations, the institution will gather eligible Pell student information, including enrollment data, and appropriate Pell payment schedules to determine a student’s eligibility for a second Pell award during a single award year. This additional eligibility will be processed through the Department’s COD system for payment to the student.
3. Consideration of Improved Information Technology
All payment and disbursement information will be exchanged electronically between the institution of higher education and the Department.
4. Efforts to Identify Duplication
There is no duplication of data as a result of the collection of this information.
5. Burden Minimization as Applied to Small Business
No small businesses are impacted by this collection.
6. Consequences of Less Frequent Data Collection
Recordkeeping requirements are imposed to assure accountability of program participants for proper program administration and less frequent collection could impair accountability of program participants.
7. Special Circumstances Governing Data Collection
The information collection requirements require no special circumstances.
Consultation Outside the Agency
These regulations were discussed with members of the higher education community and other interested parties in a series of Negotiated Rulemaking sessions in March, April and May of 2009. Additionally, we published 60 and 30-day Federal Register notices allowing the public to provide their comments.
9. Payment or Gift to Respondents
No payments or gifts will be provided to respondents.
10. Assurance of Confidentiality
The final requirements do not cover any confidential information.
11. Questions of a Sensitive Nature
ED is not requesting any sensitive data.
12. Annual Hour Burden for Respondents/Recordkeepers
We estimate that 5,422 institutions will provide this extended eligibility to its students and anticipate it will take a maximum of 70 minutes to calculate the eligibility for those students.
Affected Entities and Burden:
690.63(h) Payment from Two Schedule Awards
# of # of # of Hours
Respondents Responses Burden
Institutions:
Proprietary 1,999 12,536 X .25 hours = 3,134 hours
Private 1,534 9,486 X .25 hours = 2,372 hours
Public 1,889 11,858 X .25 hours = 2,965hours
Total 5,422 33,880 8,471 hours
690.64 Payment Period in Two Award Years
# of # of # of Hours
Respondents Responses Burden
Institutions:
Proprietary 1,999 25,071 X .50 hours = 12,536 hours
Private 1,534 18,973 X .50 hours = 9,487 hours
Public 1,889 23,716 X .50 hours = 11,858 hours
Total 5,422 67,760 33,881 hours
690.67(a) Student Eligibility for a Second Scheduled Award
# of # of # of Hours
Respondents Responses Burden
Institutions:
Proprietary 1,999 219,373 X .08 hours = 17,550 hours
Private 1,534 166,012 X .08 hours = 13,281 hours
Public 1,889 207,515 X .08 hours = 16,601 hours
Total 5,422 592,900 47,432 hours
690.67(b) Transfer Students
# of # of # of Hours
Respondents Responses Burden
Institutions:
Proprietary 1,999 31,339 X .17 hours = 5,328 hours
Private 1,534 23,716 X .17 hours = 4,032 hours
Public 1,889 29,645 X .17 hours = 5,040 hours
Total 5,422 84,700 14,400 hours
690.67(c) Special Circumstances
# of # of # of Hours
Respondents Responses Burden
Institutions:
Proprietary 1,999 15,670 X .08 hours = 1,254 hours
Private 1,534 11,858 X .08 hours = 949 hours
Public 1,889 14,822 X .08 hours = 1,186 hours
Total 5,422 42,350 3,389 hours
690.67(d) Non-applicable Credit or Clock Hours
# of # of # of Hours
Respondents Responses Burden
Institutions:
Proprietary 1,999 9,402 X .08 hours = 752 hours
Private 1,534 7,115 X .08 hours = 569 hours
Public 1,889 8,894 X .08 hours = 711 hours
Total 5,422 25,410 2,032 hours
Annual Cost of Burden to Respondents
We estimate that the cost to the institutional respondents will be:
# of Est. $ per Est. $
Respondents Hour Burden
Institutions:
Proprietary 1,999 $15 x 40,554 hours = $608,310
Private 1,534 $15 x 30,690 hours = $460,350
Public 1,889 $15 x 38,361 hours = $575,415
TOTAL 5,422 $1,644,075
13. Start-up Cost Burden to the Respondents
There is no new system start-up costs associated with the final regulations.
14. Estimated of Annual Cost to the Federal Government
There are no additional costs to the Federal government as a result of the final regulation.
15. Reasons for Changes to Burden Hour Estimated
This is a new collection that is required by a change in regulation due to implementing the statutory changes made by the Higher Education Opportunity Act (HEOA) (Pub. L. 110-315) that amends the Higher Education Act of 1965, as amended (HEA). A summary is provided below.
Respondents, Responses and Burden Hours:
# of # of # of Hours
Respondents Responses Burden
New Inventory 5,422 847,000 109,605 hours
16. Collection of Information with Published Results
The results of the collection of information will not be published.
17. Approval to Not Display Expiration Date
ED is not seeking this approval.
18. Exception to the Certification Statement
ED is not requesting any exceptions to the “Certification for Paperwork Reduction Act Submissions” of OMB Form 83-1.
| File Type | application/msword |
| File Title | SUPPORTING STATEMENT |
| Author | Kenneth Smith |
| Last Modified By | Authorised User |
| File Modified | 2009-11-04 |
| File Created | 2009-11-04 |